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Banks

Banks woke up after FedFundamentals : According to minutes of the Fed's latest meeting, U.S. central bankers feel it would be time to raise rates at the next Fed meeting on June 14-15 if hiring and economic growth continue to strengthen and inflation keeps rising. Higher rates are good for Banks and bad for Utilities and REITs. Technicals : Banking sector was a laggard compare to broad market but recently has been holding near year's highs. With yeasterday's reaction to Fed's announcment, it triggered an initial Entry after break and close above trend line. I am curful here, as it is only 1 day action and could be erased. Trade Management : Break of bull flag triggered at $23.20 with respective stop at $23. If it builds udner the highs $23.77 new set up, I will add with Target at $24.70 (2015 highs)
AMEX:XLFLong
by andrew.berg
Oil Price stress on Banks with energy exposureOil price recovery has been mostly driven by USD related factors and so the fundamentals are still not where they need to be and the chronic oversupply continues. The banks with the largest energy debt exposure have felt the squeeze as a result and remain relatively risky. This chart shows the performance of the banks with the largest declared Energy debt exposure in the US vs the XLF ETF and wider S&P 500 Index, the backdrop is the Oil price.
NYMEX:CL1!Short
by MarcusWilliamson
1
Something's stirring in the gold marketA break above 1180 could signal the end of the secular bear market within the larger bull market of gold, as for the first time gold made a higher high price since it fell from a peak of 1900. Current price action is considerately overbought, but every dip was bought up given the fear and global macro. Next few days we might potentially see Dollar correcting by at least 3% and this will be the catalyst of a 'higher-high' in Gold vs USD ratio. Yes I'm aware, analysis such as Harry Dent is calling for $700 gold. I'm unconvinced. Deflation is the trend in the global economy and gold is an inflation hedge. So why would gold go up when the global economy is deflating? Link: economyandmarkets.com Simple, central banks all around the world are stuck. In the midst of a market crash and interest rate were still at 0%, not even QE is having any significant impact in countries like Japan and Europe. Markets are in untested water! They have no other gunpowder to stimulate the economy right now. Historically gold rallies in times of a rising interest rate since it is an inflationary hedge, and interest rate rises because the economy is heating up. Market expectations are changing. From a strong dollar as a result of Janet Yellen not wanting to lose her confidence by rising rates, to macro fears about the global economy. People will be expecting rates to be dropped, or even negative in the following months. What if the interest rate were to be negative if Central Banks run out of options? What if more QE was done? Why would anyone still want to keep their money in insolvent banks and be charged at a monthly fee? Gold isn't just a commodity, it is also a form of money beyond the control of any entity like Bitcoin. The correlation impact of the economy to gold will be pretty insignificant, considering the bigger picture as a hedge against a risk. Some other factors includes only 73,000 ounce of gold remaining in the vaults of COMEX as of 2nd Feb 2016. 542 ounce of paper gold owner backed by just 1 ounce of physical gold. What if these people starts asking for their gold back with the paper contracts they bought? You can expect a default ahead in the exchange just like the infamous bitcoin exchange, MtGox. It is simply an accident waiting to happen! Mike Maloney: www.youtube.com
FX:XAUUSDLong
by LastBattle
2
Is it breaking out of a weekly Triangle? Since its 2012- 2013 uptrend line was broken $BAC has been trading inside what looks like a weekly Triangle pattern (see black dashed line and the 17.5-18$ structure zone shown in the chart) During July, $BAC has completed a weekly bearish Bat pattern (PRZ between 17.8$ and 18.3$ that managed to stop, for a while, the stock's rally. The pattern's targets are 16.8$ and 16$, but for now we see that the price is finding support inside the structure zone. The question now is how will the price will react to the 17.5-18$ zone. A close above it, could mean a weekly breakout from the weekly triangle. A close above 18.3$ will also violate the bearish Bat pattern. A close below 17.5$ can be interpreted as weekly False Break and signal that the price will head lower towards the pattern's targets and possibly the bottom of the Triangle. As long as the price remains within the PRZ, I'm sticking with the pattern, despite the fact that we saw the price bouncing from 17.5$ (warning signal for bears) The R/R is great and Bats usually are reliable patterns. If you like this analysis and you're looking for more swing trading ideas - Subscribe to my free weekly newsletters - goo.gl
NYSE:BACShort
by themarketzone
1